ExxonMobil and its partners have committed $1 billion to the Usan Infill Project offshore Nigeria, a move expected to increase the country’s crude oil production by about 40,000 barrels per day (bpd) and support ongoing efforts to attract fresh investment into the upstream sector.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed te investment on Wednesday, describing it as a significant milestone that signals ExxonMobil’s renewed drilling activities in Nigeria after a decade-long pause.
The project will be executed by Esso Exploration and Production Nigeria Limited (EEPNL), ExxonMobil’s Nigerian affiliate and operator of Oil Mining Lease (OML) 138, which hosts the Usan deepwater oilfield under a production-sharing contract with NNPC Limited.
Speaking at an industry conference in Abuja, Managing Director of ExxonMobil Nigeria, Jagir Baxi, confirmed the company’s commitment to the investment, reinforcing confidence in Nigeria’s offshore oil sector.
According to the NUPRC, the Usan Infill Project is expected to deliver first oil within 18 months. The regulator said seismic studies and subsurface evaluations identified additional development opportunities within the field, paving the way for the new investment.
Chief Executive of the NUPRC, Oritsemyiwa Eyesan, noted that the project would contribute to efforts aimed at increasing Nigeria’s crude oil output and strengthening investor confidence in the country’s petroleum industry.
In a related development, the NUPRC presented 19 petroleum prospecting licences to successful bidders from the 2022/2023 Mini Bid Round and the 2024 Licensing Round. The licences cover assets located across deepwater, shallow-water and continental shelf acreages.
The issuance of the licences forms part of the government’s strategy to unlock new hydrocarbon resources, expand reserves, and attract long-term capital into the oil and gas sector.
This comes as Nigeria intensifies efforts to revive upstream investment, particularly in offshore and mature assets, following years of declining production caused by underinvestment, oil theft, and operational challenges.
